SandRidge elects to exercise grace period for payment of senior notes interest

SandRidge Energy Inc. (OTC PINK: SDOC) has elected to exercise its grace period and defer making approximately $21.7 million in interest payments due Feb. 16, on its outstanding $543.6 million principal amount of 7.5% senior notes due 2023 and its outstanding $46.9 million principal amount of 7.5% senior convertible notes due 2023.

The company has sufficient liquidity to make these interest payments, but has elected to use the 30-day grace period in connection with its ongoing discussions with stakeholders. Entry into the grace period does not constitute an event of default under the indenture governing the notes.

On Feb. 17, James Bennett, SandRidge president and CEO, commented, "With a strong cash balance, we will continue operations without interruption, including paying employees, vendors and service providers. Today's actions will preserve liquidity and flexibility as we continue to engage in constructive dialogue with our stakeholders."

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